In September US Treasury Secretary, Paul O’Neill, told the Senate Banking Committee that he would favour establishment of an international bankruptcy law as an alternative to IMF bailouts. “I think … we need to take the action that’s been talked about for years… We need an agreement on international bankruptcy law so that we can work with governments that need to go through bankruptcy instead of socialising the costs of bad decisions,” he said. The mechanism would allow countries with excessive debt burdens to work out agreements with foreign creditors to reduce their debts through a formal process. Similar proposals have previously been rejected.
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The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, the Dispatch, a biannual analysis of the World Bank and IMF Spring and Annual Meetings, and the NewsLens, a bi-weekly roundup of key news and critical viewpoints published about the World Bank and IMF.
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